Because their (Porsche) cars are that good. What you get for 120K is supercar performance, quality few can even come close to competing with and a car that has more heritage than anything else on the road and on the track.

If BMW could sell our M3s for 90-100 they would but that isnt the case.

Don't get the $90k comments here. If you option an M3 and a boxster with the same equipment - the boxster is under $80k and within $4k of an M3. The price goes beyond $80k when you add more technology and appearance items that are not offered on the M3.

its done by auto journalists, awd cars (easier for novices) will always have an advantage

Although I agree with you that awd cars tend to be a bit more manageable for novices, it's more than that. In this very forum there's a video showing the RS5 to be just that little bit quicker head to head - and the video is done by race types from Fifth Gear.

In addition, fastestlaps.com has the RS5 faster on 12 out of fifteen tracks. As I've mentioned, it's close, but the RS5 is definitely just that little bit quicker on track, while being a tick off the M3's best in a straight line.

Don't get the $90k comments here. If you option an M3 and a boxster with the same equipment - the boxster is under $80k and within $4k of an M3. The price goes beyond $80k when you add more technology and appearance items that are not offered on the M3.

+1

People complain about Porsche's prices but fact of the matter is, they are highly customizable cars and you can go nuts with what they can do in terms of options. If you dont add 10K worth of carbon fiber and items that are insane, their cars dont equate to astronomical in price. You can get a new 991S for ~110k, which is a great deal for what you get.

People complain about Porsche's prices but fact of the matter is, they are highly customizable cars and you can go nuts with what they can do in terms of options. If you dont add 10K worth of carbon fiber and items that are insane, their cars dont equate to astronomical in price. You can get a new 991S for ~110k, which is a great deal for what you get.

Porsche does make great cars, but they also have quite large margins. They don't have one of the highest if not the highest profit margins out there without good reason. People are willing to pay these margins, but that doesn't mean it's great value.

Below from WSJ:

"Operating profit margins of around 20% are pretty much unheard of in the auto industry’s recent history. Volume car makers often eke out profit margins around 2%-3%, maybe around 5% or 6% if things are going well. Big luxury-car makers such as Mercedes-Benz and Audi currently reap between 9% and 13% margins (watch out for BMW earnings Tuesday)

Porsche’s margins have roared ahead in recent years, helped by a streamlined production system and strong pricing power. But maintaining profit margins of around 20% will become increasingly difficult, the closer Porsche gets to achieving its target of doubling annual sales to 200,000 cars by 2018."

Porsche does make great cars, but they also have quite large margins. They don't have one of the highest if not the highest profit margins out there without good reason. People are willing to pay these margins, but that doesn't mean it's great value.

Below from WSJ:

"Operating profit margins of around 20% are pretty much unheard of in the auto industry’s recent history. Volume car makers often eke out profit margins around 2%-3%, maybe around 5% or 6% if things are going well. Big luxury-car makers such as Mercedes-Benz and Audi currently reap between 9% and 13% margins (watch out for BMW earnings Tuesday)

Porsche’s margins have roared ahead in recent years, helped by a streamlined production system and strong pricing power. But maintaining profit margins of around 20% will become increasingly difficult, the closer Porsche gets to achieving its target of doubling annual sales to 200,000 cars by 2018."

I am well aware that they make the highest margins in the auto industry and yes you are right. They dont have the highest without good reason. They make what are argueably the best cars in the industry as well so IMO its justified since its a high end product that people WILL pay to have.

Selling 200K cars a year they wont need to make those type of margins, though Id venture to say margins wont drop much (maybe 17% instead of 20%) but they will make up those margin dollars with the increased volume.

I was making the point that what you get in a 991S for the price is a great value. The performance and handling we all know are there. But it's the quality, the fit and finish and superior parts as well as the inherent reliability and dependability they have that are just leaps and bounds above pretty much everyone else that really put it in a class of its own.

I do think there are some moves they need to make though, such as ALWAYS having a top end car or two (CGT, 918 Spyder) that will be priced around 300-400K. This car would be the "true" exotic car in the lineup that not only give you the Ferrari/Lambo beating performance and handling, but also the looks that come with a "true" exotic. We know how truly exotic a car they can make, but they should showcase this with a model that is a staple in the line up rather than a one off thing every decade or so.